Answer:
$5,340
Step-by-step explanation:
Given :
Making a probability distribution :
X : ___12000 ____0 _____-6200
P(X) __ 0.6 _____ 0.1 _____ 0.3
Tge expected value of the purchase si equal to the expected value or average, E(X) :
E(X) = ΣX*p(X)
E(X) = (12000 * 0.6) + (0 * 0.1) + (-6200 * 0.3)
E(X) = 7200 + 0 - 1860
E(X) = $5,340
